The following data relates to a national economy (all figures in $billions):

-Refer to the above graph to answer this question.What is the value of equilibrium income?
A)0.
B)$300.
C)$600.
D)Cannot be determined.

Question

The following data relates to a national economy (all figures in $billions):
 
-Refer to the above graph to answer this question.What is the value of equilibrium income?
A)0. 
B)$300. 
C)$600. 
D)Cannot be determined.

Quizplus · Accepted Answer

The equilibrium income is where the 45-degree line intersects the aggregate expenditure line, and this occurs at the point where both lines intersect at $600 billion on the graph. Therefore, the value of equilibrium income is $600 billion.

The Following Data Relates to a National Economy (All Figures